A New Business’ Guide to Payments & Invoicing
Making sure that your invoices are sent out on time and that payments are processed efficiently is vital for any business to survive. As a new business owner, this is particularly important, as startups typically have less disposable income to play around with and less room to manoeuvre financially. Ensuring your manage your payments and invoices correctly will allow you to move your new enterprise to move forward with confidence.
Keeping on top of your business invoicing, payments and cash flow can be a challenge for new business owners. With so many other tasks to accomplish each day, finding the time and energy to sit down and figure out your financial processes can be difficult. However, having control over your business finances, issuing invoices and getting paid on time is crucial if your business is going to stand the test of time and continue to thrive moving forward.
Continue reading to learn how you can look after your new business’ payments and invoicing with ease.
Implement Invoicing Software
Cloud-based invoicing software solutions can provide a range of benefits for your business. Many of these platforms will integrate seamlessly with other business software packages that you may already be using within your organisation. What’s more, invoicing software helps business owners to make their bookkeeping processes more straightforward than ever before. With less human error, more accurate records and automating your invoicing process, you can be sure that you will never again miss an invoice or a payment.
Provide The Right Information
When you issue an invoice, it’s important that you provide the right information such as the type of product/service provided, the quantity and the price you have agreed upon. If you are not registered for GST, then there will be no tax element to the invoice. This is known as a regular invoice. On the other hand, if your business is registered for GST, you will need to provide a tax invoice, which will include extra information regarding the GST being charged.
Whether you send out a regular invoice or a tax invoice, you will also need to include your business name and contact information, the client’s name and contact information and your payment terms. You should also include a unique Invoice number and be sure to date the invoice for easier record keeping.
Outline Your Payment Terms
Issuing an invoice is only the first step in getting paid. You need to have clearly defined payment terms in place to ensure that you are paid in a timely manner. Your business payment terms should outline what methods of payment you will allow customers and clients to use to pay for the goods or services you are providing. It should also include a due by date where you expect the payment to be processed by. If you provide options for credit, you can include your credit terms and debt collection policies to keep your customers informed as to the payment options available to them.
Invoice Reminders Are Key
Every business will face late payments at one point or another. Whether your customer is experiencing financial difficulties in their business, they are disorganized or they are trying to avoid payment, you need to keep on top of your invoice reminders. Invoice reminders should be well-timed and should be persistent. Invoicing software can help you to automate this process so your invoices never slip through the cracks.
Manage Your Payments And Invoicing With Confidence
As a new business owner, you need to get a handle on your invoicing and payment processes from the very beginning. Failing to get on top of these tasks early on, could mean serious financial trouble for your company down the line. Put the right processes in place to help you to manage your business invoicing processes so that your invoices are sent out on time and your clients complete the payment in a timely manner.